A 1948 Supreme Court ruling realigned the film industry

The 1948 Supreme Court ruling was overturned in 2020

In 2020, US District Court Judge Analisa Torres overturned the 1948 Supreme Court ruling that broke up the studio system—effectively allowing the film industry to become vertically integrated once again—with companies like Amazon and Disney taking advantage of the relaxed regulations.

Hollywood's 'golden age' was controlled by vertically integrated studios

Hollywood in the early to mid-20th century was largely controlled by the "Big Five" studios: Paramount, Warner Bros., Fox, MGM, and RKO. The studios were vertically integrated, overseeing every aspect of film production, distribution, and exhibition. During this era, actors like Cary Grant and Judy Garland were under contract with specific studios—typically for seven years. Garland signed with MGM at age 13, which counted on them to draw audiences.

See a timeline of the consolidation of the television and film industry, beginning with Vaudeville theatre traditions from the 1880s.

Hollywood, explained

It all began in 1887 when Hollywood was registered as a small town before merging with Los Angeles in 1910. Filmmakers moved west to avoid Thomas Edison’s patent lawsuits, and the sunny California climate provided the perfect setting for year-round production. By the 1910s, studios like Paramount and Warner Bros. established themselves, and Hollywood's global dominance was cemented during its golden age from the 1930s to the 1950s.

Modern antitrust law was created to combat the Standard Oil Trust

John D. Rockefeller's Standard Oil Trust enabled him to evade laws against a single corporation buying stock in another. His centralized board of directors held stock in many different oil companies under his control, allowing Rockefeller to eventually monopolize the oil refining industry. Efforts to regulate and prevent the Standard Oil Trust's monopoly became known as "antitrust" laws.

Thomas Edison inadvertently spurred the film industry's move to Hollywood

The inventor's patent on the motion picture camera included several stipulations that required independent movie studios to work with Edison's Motion Picture Patents Co., making the East Coast undesirable for aspiring filmmakers.

The 'golden age' studio system often controlled actors' personal lives

The "Big Five" studio system minted stars, but it also tightly controlled their personal lives. Homosexuality, in particular, was seen as a liability. One example is Rock Hudson, a major star in the 1950s and '60s, who was forced into an arranged marriage with his agent's secretary.

A 1954 Supreme Court ruling helped quiz shows avoid regulation

When the Federal Communications Committee attempted to rein in giveaway shows, the Supreme Court ruled that quiz shows were not a form of gambling because contestants did not have to risk anything to participate. Some believe that the ruling prevented proper oversight of the industry as it became more popular.

How Spielberg changed film

Before "Jaws," summer was Hollywood’s off-season. Steven Spielberg’s 1975 thriller changed all that, launching the era of the summer blockbuster. From "E.T." to "Jurassic Park," Spielberg’s films redefined how stories were told, how audiences reacted, and how studios marketed.

The 'Movie Brats'—the nickname given to 1970s film directors like Steven Spielberg, Francis Ford Coppola, George Lucas, and others—ushered in a new era of Hollywood.

Read about the history of the Sherman Antitrust Act, the first law to ban monopolistic behavior

In its later years, Standard Oil formed a business trust that reflected the company's exponential growth. Politicians wanted to prevent such trusts and used the Sherman Antitrust Act to force Standard Oil to break up.

How Alfred Hitchcock changed cinema

In 1960, Alfred Hitchcock changed moviegoing with "Psycho." At a time when audiences came and went during screenings, he enforced strict start times, banned late arrivals, and kept plot details secret. The result? A $32M hit that helped shape modern theater etiquette.

In 2018, the Supreme Court sided with American Express in a case that significantly changed antitrust regulation.

The US Department of Justice sued Visa, Mastercard, and American Express in 2010 over alleged anticompetitive contracts with merchants. While Visa and Mastercard settled out of court, American Express went to trial and had its case taken all the way up to the Supreme Court—which ruled that both sides of a transaction business must be analyzed to determine a monopoly.

Biggest moments that defined Disney

Walt Disney’s first studio went bankrupt, but he and his brother Roy started over in 1923, eventually building an entertainment empire. From "Snow White" to "The Little Mermaid," Disney shaped animation and expanded into TV, theme parks, and major acquisitions like Pixar and Marvel.

The Supreme Court's first major free-speech ruling rested on a legal standard that was later overturned

In Schenck v. United States (1919), the court introduced the "clear and present danger" test—permitting the government to restrict speech that posed an immediate threat to public safety. Although the doctrine was later replaced, the ruling upheld the conviction of a man who had distributed anti-draft pamphlets.

Hollywood's efficient response to the Spanish flu made it a filmmaking destination

In 1918, the Great Influenza epidemic killed more than 675,000 Americans. Los Angeles was one of the first cities to shut down movie theaters, most of which were independently owned and couldn’t afford the revenue loss. The results were twofold: the quick response meant that Hollywood could bounce back faster than other film hubs, and it also contributed to the rise of vertical integration as studios stepped in to purchase the flailing theaters.

'The Jazz Singer,' the first film with synchronized sound, changed Hollywood

Movies changed forever in 1927, when Warner Bros. released "The Jazz Singer," the first feature film with integrated dialogue. Based on a Broadway musical, the movie starred Al Jolson as the son of a Jewish cantor who wants to be a popular singer.

The head of MGM Studios created the Academy of Motion Picture Arts and Sciences to combat unionization efforts

The organization, which votes for the Academy Awards, was founded in 1927 by Louis B. Mayer, head of MGM Studios, to stifle labor disputes and maintain the public image of the film industry. "I found that the best way to handle them was to hang medals all over them,” Mayer said, according to Scott Eyman's biography of the studio head.

Citizens United extended First Amendment protections to corporate political spending

The Supreme Court's 2010 decision struck down limits on independent political expenditures by corporations and other organizations, ruling that such spending is protected speech—a decision that was deeply contested and reshaped campaign finance law.

Charlie Chaplin's 'Modern Times' blended slapstick and satire

The 1936 film thrust Chaplin's iconic Little Tramp character into the Industrial Revolution, satirizing how mass production was dehumanizing individuals. The movie was not only a hit, but it was also the product of a burgeoning Hollywood: Chaplin had founded his own company (United Artists) in 1919.

A 1954 Senate subcommittee investigated the comics industry, believing it was corrupting young readers.

In 1975, a Major League Baseball clause that kept players legally tied to their teams after retirement was dismantled, creating the modern concept of free agency.

An 1873 Supreme Court case about slaughterhouses weakened parts of the 14th Amendment

In 1873, the Supreme Court's Slaughterhouse Cases ruled that the 14th Amendment's "privileges or immunities" clause protected only federal—not state—citizenship rights, greatly limiting the amendment's power to safeguard enslaved people from state discrimination.

The economic impact of the Hollywood strikes

The 2023 strikes in Hollywood resulted in significant wins for the WGA, DGA, and SAG-AFTRA unions. Workers were promised to receive bonuses that allowed them to benefit from high-performing streaming shows and films. This article shares how the rewards have been distributed to union members since their implementation. See a breakdown of the bonuses for each union, how the industry has improved, and the challenges some members still face.

The Supreme Court curbed the EPA's power to regulate carbon emissions in 2022

In West Virginia v. EPA, the Supreme Court ruled 6-3 that the EPA exceeded its authority by requiring industrywide carbon cuts. Chief Justice Roberts' opinion invoked the "major questions" doctrine, which limits the ability of federal agencies to act without explicit congressional approval.

The Supreme Court limited federal judges' power to issue nationwide injunctions in 2025

In a 2025 decision arising from litigation over a presidential order on birthright citizenship, the Supreme Court held that individual federal judges may not nationwide block executive policies—curbing the use of sweeping injunctions and reshaping how constitutional challenges proceed through the courts.

Gibbons v. Ogden expanded federal power over interstate commerce

In 1824, the Supreme Court unanimously invalidated a New York steamboat monopoly, ruling that navigation between states constitutes interstate commerce. Chief Justice John Marshall held that Congress has authority over such commerce and that conflicting state laws are void under the supremacy clause.

Hollywood movies' ratings are controlled by the Motion Picture Association

The board, established by a board of parents, has provided ratings (like G, PG, PG-13, R, and NC-17) for Hollywood films since 1968. Although the MPA provides specific criteria for rating films, many of the characteristics (such as "snippets of language that go beyond polite conversation") are subjective.

The Hays Code limited the ways horror films could scare audiences

Beginning in 1930, the Hays Code laid out a strict set of guidelines for Hollywood filmmakers to prevent films that might corrupt those with a "susceptible mind." That meant no graphic violence, no sexual relations outside of marriage (or of a homosexual nature), and no interracial relationships, among other dictums.

Classic movies are prone to decomposition because they're captured on nitrate film

Nitrate film was the standard in early Hollywood and is prone to decomposition over time. It's led to an estimated 75% of early American films being lost to history.

In recent years, Hollywood studios have reevaluated their Comic‑Con presence

Comic-Con’s impact on the movie industry may be diminishing. In 2025, major studios—including Marvel, DC, Lucasfilm, Sony, Paramount, Legendary, and Lionsgate—scaled back Comic‑Con participation. They cited high costs, timing that didn’t align with release schedules, and limited marketing impact in a crowded promotional landscape.

In 1936, the federal government passed the Robinson-Patman Act, an antitrust law initially aimed at breaking up the power of the grocery store chain A&P.

The Supreme Court blocked states from setting term limits for Congress

In US Term Limits v. Thornton (1995), the Supreme Court struck down state laws that tried to impose term limits on their congressional delegations. The court ruled such restrictions unconstitutional unless added through a federal amendment.

The winding journey from Standard Oil to the modern oil industry

Standard Oil’s impact on the business world can be clearly seen today in oil giants like Exxon and Chevron. But the journey from the Rockefellers’ trust to the modern firms was a windy road. After the Supreme Court ordered Standard Oil’s break up, the first step saw it separate into many state-based companies like Standard Oil of California and the Ohio Oil Company. Visualize it here.

Prior to the creation of the Securities and Exchange Commission, the 1913 Pujo Committee determined that 180 people were managing more than $22B—a large slice of the entire nation's wealth—and recommended extensive regulations.

The Nixon administration tried and failed to stop the press from publishing the Pentagon Papers

In 1971, the Supreme Court ruled against the government's attempt to block The New York Times and The Washington Post from publishing classified documents on the Vietnam War, delivering a landmark victory for press freedom.

New York Times Co. v. Sullivan transformed libel law and the relationship between the press and public officials

The 1964 case arose when an Alabama official sued The New York Times over a civil rights advertisement he claimed was defamatory. The ruling makes it very difficult for public officials to win libel suits against the press unless they can prove deliberate falsehood.

A 1927 map shows where Paramount shot its many productions

The skeleton key of California identified in-state locations that would substitute for shooting films abroad. It includes some interesting choices, like establishing Wales along the Los Angeles coast.

The inaugural Cannes Film Festival featured legendary directors

The festival’s first year was 1946. It featured 11 films from some of the world’s best filmmakers, including Jean Cocteau, Alfred Hitchcock, George Sydney, and Billy Wilder.

Plessy v. Ferguson legalized segregation until Brown v. Board of Education overturned it

In 1896, the Supreme Court upheld racial segregation under the "separate but equal" doctrine, enabling decades of discrimination. This explainer traces how Brown later ruled school segregation unconstitutional and reshaped civil rights law.

Youngstown Sheet & Tube Co. v. Sawyer established the framework courts use to evaluate presidential war powers

When Truman seized US steel mills during the Korean War, the Supreme Court ruled that he had overstepped his authority. Justice Jackson's concurring opinion held that presidential power is strongest when Congress authorizes action, uncertain when Congress is silent, and weakest when Congress explicitly refuses authorization.

Show business is increasingly leaving Hollywood

Using tax incentives, states like Georgia, New Jersey, and New Mexico are luring studios to produce their films and television shows outside of California. Changing business models after COVID-19 largely influenced this change.

Carlin's 'Seven Words' led to a landmark Supreme Court ruling

The original recording of Carlin's bit aired on a New York radio station in 1973, leading to an FCC complaint. The case went up to the Supreme Court, which ruled that the FCC had the right to penalize broadcasters that aired obscene content during the daytime.

Hollywood alternative Flying A Studios was housed in Santa Barbara for a decade

Founded in 1910 in Chicago, the American Film Company moved west to Santa Barbara to shoot cowboy westerns. For a decade, the studio was prolific, putting out an average of 242 films a year but collapsed within a decade due to a lack of vision.

A 1912 congressional bill attempted to prohibit fake photos in the US

In the 1800s, photographs were held up as indisputable resources of truth. But the photography industry devised ways to alter photos, resulting in the rise of fraudulent photos—from shots with celebrities to the turn-of-the-century version of fake nudes—prompting government intervention.

Popular films not yet added to Congress' film registry

The Library of Congress' National Film Registry's annual announcement of 25 new inductee films always makes a splash in the news. These films are considered significant enough to be preserved by the US' central library. But over the years, the library has maintained a separate list of films you might think would be added but haven't received the necessary votes yet. Check out the list of "not yets" here.

To avoid a total collapse of the housing market, the US government took control of the two leading mortgage companies, Fannie Mae and Freddie Mac.

Listen to a podcast that traces the history of DOJ antitrust enforcement

This podcast series traces how the US government's approach to regulating big business has changed over a century—from the DOJ's breakup of John D. Rockefeller's Standard Oil monopoly, through lawyer Robert Bork's influence on how courts interpret competition law, to the FTC's modern antitrust lawsuit against Amazon.

Disney's 1937 film 'Snow White' was honored by the Oscars 2 years in a row.

A single 1803 Supreme Court case, Marbury v. Madison, gave courts the power to strike down acts of Congress.